Telling Downtown’s Story: Swiss Bear’s Role

Saturday

Mar 16, 2013 at 12:01 AMMar 16, 2013 at 5:49 PM

Among the 1977 Central Business District Revitalization Plan recommendations was development of mid-block pedestrian parks connecting with interior parking lots to supplement existing on-street parking and creation of a Municipal Service District (provided in the N.C. General Statutes) as a mechanism to fund a wide range of downtown revitalization projects.

Among the 1977 Central Business District Revitalization Plan recommendations was development of mid-block pedestrian parks connecting with interior parking lots to supplement existing on-street parking and creation of a Municipal Service District (provided in the N.C. General Statutes) as a mechanism to fund a wide range of downtown revitalization projects.

Also referred to as a BID (Business Improvement District), revenue is generated through imposition of a tax on owners of property subject to the ad valorem property tax in a defined district, not to exceed $1.50 per hundred valuation.

Effective July 1, 1978, at the property owner’s request, the city established the Municipal Service District (MSD) in four core blocks bounded by Craven, Middle, Hancock and Tryon Palace Drive (South Front Street). The $.50 per $100 valuation, generating $250,000 over a three year period was used to develop Bear Plaza ($75,000) on a vacant Middle Street lot, the former site of the Coplon Smith Department Store that burned in the 1970s. The interior of the mid-block park allowed convenient access (walkabilty) to the second MSD project known as the Federal Alley Parking Lot. The owners of 22 separate properties, ranging in size from 75 to 11,500 square feet in the interior block, signed a five year renewable agreement allowing the city to develop the interior area with MSD funds ($175,000) to be utilized as a common parking area.

In 1984, with the completion of the two projects, the rate was reduced to $.25, generating $24,000 annually. Seen as insufficient funds for any long term major improvements, Swiss Bear led the effort to expand the special tax district based on a plan of public improvements. Mayor Ella Bengel and the Board of Aldermen approved and appointed a MSD Advisory Committee: Jim Chagaris, Virginia McSorley, Paul Johnson, Lou Steinberg, Blackie Stith, Lonnie Pridgen, Harold Talton and Susan Moffat.

They met in June 1985 to define objectives and explore expansion of the district to encompass the entire central business district so adequate funds could be generated to implement defined on-going public improvements. Smith Design Group was hired to develop general guidelines used to solicit property owner’s support to expand the district to encompass the area bounded by property on the north side of Broad Street, west side of Hancock Street to the shorelines of the Neuse and Trent Rivers. Following public hearings, the Board of Aldermen approved the expansion with the exclusion of vacant lots and residential property and reduced the tax rate to $.18 for that fiscal year.

In 2007, the MSD Committee discussed amending the 1986 ordinance to include all properties, residential, commercial and vacant land, as many residences had now become rental properties or converted for commercial. Since the value of all property within the MSD had increased, many by 700 to 900 percent, the committee believed all property owners in the MSD should be taxed as all properties were benefiting from the improvements. A review of the General Statue determined, when a boundary was defined and approved by the municipality, individual lots within that district (except those with nonprofit status) could not be exempted. Following several public hearings, on Jan. 8, 2008, the Board of Aldermen adopted a resolution to incorporate previously excluded real property into the existing MSD.

Since its creation, MSD tax dollars provided the bulk of funding for numerous public projects; 12 blocks of major streetscape improvements, new streetlights, landscaping, street furniture, four parking lots, two mid-block pedestrian parks, two alleyways improved, design guidelines, special reports, purchase of the lot at the northwest corner of Craven and South Front Street, personnel for litter pick-up, foot patrol and South Front Street streetscape improvements from East Front to Hancock Street that will begin in the very near future.

The commitment of property owner’s and involvement of the private sector has been vital to downtown’s success. The increase in property values within the MSD reinforces it.

Swiss Bear coordinates the MSD meetings held quarterly at which time the city provides an up-date on funds and projects. The current tax rate is $.12.

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